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Introduction to Crypto: BITCOIN – THE FORERUNNER OF CRYPTOCURRENCIES THAT REVOLUTIONIZED THE FINANCIAL WORLD

Bitcoin (?) is a decentralized digital currency that is independent of central banks, administrators or financial institutions and can be transferred directly between users without any intermediaries. It is a modern way of protecting the value of money, similar to gold, and an innovative tool for making transactions all around the world. Bitcoin can be exchanged for other currencies, products and services. It has no physical form and exists only virtually. It can be used to pay for certain services and products. Bitcoin is honored as a tender by large companies such as Microsoft and Expedia.

Bitcoin was invented by a software developer (or his team), Satoshi Nakamoto, in 2009. Bitcoin transactions are partially anonymous and verified by network nodes using cryptography and are kept in a chain of blocks in a public distributed ledger called Blockchain, which resembles a bank register. Bitcoin has become an innovative digital currency using its own new transaction system, which has been created in opposition to the traditional financial system such as interbank transfers or Venmo and PayPal services. Bitcoin operates in a distributed environment across the network and is not controlled by a single institution or bank, and anyone can become a user of this network.

An important aspect of Bitcoin is its resistance to inflation and manipulation by governments, corporations and other institutions. Using Bitcoin is legal in most countries and the major method to earn profit is to invest and trade in Bitcoins , i.e. buying at a lower price and selling at a higher price. The Bitcoin’s value went up approximately 7 million times over a span of 12 years, from $0.01 in 2009 to almost $70,000 in 2021.

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